Kuala lumpur: The performance of the Retirement Fund (Incorporated) (KWAP) requires a balanced evaluation given its achievement of a RM12.9 billion net profit, according to Prime Minister Datuk Seri Anwar Ibrahim. Addressing the Dewan Negara, he attributed this success to the expertise, commitment, and dedication of KWAP's investment panel, management, and leadership.
According to BERNAMA News Agency, the Prime Minister emphasized the involvement of prominent investment firms, including Temasek from Singapore, SoftBank from Japan, Sequoia Capital, Aqua-Spark, 42XFund from Abu Dhabi, and NorthStar from Indonesia, in KWAP's investment in the aquaculture technology startup, eFishery. Anwar highlighted that the compound annual growth rate exceeded 8.5 percent and urged his colleagues to consider the broader financial picture.
Anwar also pointed out that KWAP's investment strategy includes significant stakes in local startups and initiatives like the GEAR-uP program, led by the Ministry of Finance in collaboration with the National Trust Fund (KWAN), which involves a total of RM30 billion in funds. These efforts aim to diversify and strengthen the fund's portfolio.
The Prime Minister was responding to a query from Senator Mohd Hasbie Muda on strategies to ensure that national retirement funds such as the Employees Provident Fund (EPF) and KWAP can continue to provide substantial dividends amid global geopolitical uncertainties. Anwar acknowledged that despite KWAP's impressive profits, reaching tens of billions of ringgit, these are insufficient to fully fund long-term pension liabilities without government support.
Anwar addressed additional questions, including one from Senator Datuk Abdul Hasim Suleiman regarding the composition of KWAP's investment committee. He assured that the panel comprises professionals, with board representation from various ministries and worker groups. However, he cautioned against relying solely on the approval of major global investment panels when evaluating investments, referencing the loss on eFishery as a learning opportunity for the fund's future decisions.